The chip group can get started with its billion-dollar project in the Saxon state capital and expand its capacities. Politicians hope that this will strengthen Germany as an industrial and semiconductor location – and also promote the energy transition.
Dresden (dpa / sn) – Green light from the federal government: The chip company Infineon is to start building a new plant in Dresden this fall. The Federal Ministry of Economics gave the company permission to start the project early, the chip manufacturer announced on Thursday. The multi-billion dollar project is expected to create around 1,000 jobs.
Infineon is aiming for public funding of around one billion euros in line with the European Chips Act, which aims to achieve a 20 percent share of global semiconductor production in the EU by 2030. As announced in November, the total investment should be around five billion euros. Infineon plans to start production in autumn 2026.
Federal Economics Minister Robert Habeck (Greens) was pleased with the early start of construction. “With the Infineon project, we are strengthening Germany as an industrial and semi-conductor location. After the settlement of Wolfspeed in Saarland, this is another strong sign of the attractiveness of Germany as a location.”
Semiconductors are among the key technologies and are central to the transformation, said Habeck. Germany must assert itself in global competition. For this reason, the federal government is prepared to provide substantial support for projects. The semiconductors that are to be produced in Dresden are necessary for the use of renewable energies or for e-mobility.
Infineon CEO Jochen Hanebeck also sees a structurally growing need for semiconductors, for example for renewable energies, data centers and electromobility. “Together we are speeding up the expansion of our production in order to benefit from the growth opportunities that the megatrends of decarbonization and digitization are opening up for us.” With the new plant, Infineon is creating the necessary conditions to be able to serve the increasing demand for semiconductor solutions.
Saxony’s Economics Minister Martin Dulig (SPD) spoke of a significant boost for Dresden as a semiconductor location. “This is good news for Saxony. The decision that Infineon announced three months ago and has now taken is another big step in the positive development of the semiconductor industry in Saxony.”
The industry network Silicon Saxony emphasized: “Now it is certain. The decision has been made and Dresden is winning the race. We are very pleased that Infineon is expanding its production capacities in Saxony. This will make Infineon Dresden one of the largest production sites for state-of-the-art semiconductor products in Europe “, said Managing Director Frank Boesenberg.
Last year, the US group Intel announced that the latest generation of chips would be produced in Magdeburg from 2027. In a first expansion stage, two semiconductor plants are to be built there. Here, too, several thousand new jobs could be created.
